Microsoft Reeling Or Cheering?

January 24, 1998|The Seattle Times

WASHINGTON — When antagonists in a lawsuit say they've settled, it doesn't mean they actually agree on anything.

That's the most striking aspect of Thursday's settlement in the case between Microsoft and the federal government _ how diametrically opposed their interpretations are of what the pact means and, more importantly, what it portends for the future.

At issue is the government's attempt to break Microsoft's alleged practice of bundling software products together and forcing computer manufacturers to accept the entire package. The Justice Department contends the company is violating terms of a 1994 antitrust settlement.

In Thursday's settlement, Microsoft avoided comtempt of court charges by allowing computer makers to remove the icon representing the company's Internet Explorer Web browser from computer screens, essentially hiding it. The lead attorney investigating Microsoft, Joel Klein, said the pact creates ``for the first time an opportunity for meaningful competition'' among companies making and selling software used to browse the Web.

To Microsoft, the settlement proves that Internet software is so intertwined with Windows 95 that the two are in fact one.

After the settlement, trial-watchers generally agreed the settlement gave Microsoft a gift _ the opportunity to avoid being held in contempt of court.

But others said the settlement is just another sign Microsoft is reeling at the hands of regulators.

``They are clearly on the defensive,'' analyst Stan Dolberg of Forrester Research told Bloomberg News. ``This is not going in their favor.''

Next Thursday, the case moves to the Court of Appeals in the District of Columbia, where Microsoft is scheduled to file arguments on why the temporary injunction settled this past Thursday should be dismissed.